A-Share Three Major Indices Slip 0.4%-1.3% at Midday; VERISILICON Sinks 5% After Results; JPM Warns of Potential Food Crisis Next Yr, Sending Agriculture and Livestock Stocks Limit Up

US stocks' three major indices fell overnight (17th), while the yield on the 30-year US Treasury rose to a 19-year high, as investors worried about persistent inflation and rising government debt. China's A-share three major indices opened marginally lower this morning (18th) by about 0.1% to 0.25%, with losses widening during the morning session. The Shanghai Composite Index closed the half day down 15 pts or 0.4% at 3,966, with turnover of RMB776.334 billion. The Shenzhen Component Index closed the half day down 160 pts or 1.1% at 14,543, with turnover of RMB860.057 billion. The ChiNext Index closed down 48 pts or 1.3% at 3,691, with turnover of RMB411.781 billion.

Major mainland Chinese banks were mixed at midday. ICBC (601398.SH) +0.030 (+0.397%) reversed earlier losses to rise 0.4%, CCB (601939.SH) +0.090 (+0.874%) gained 0.9%, while CMB (600036.SH) -0.150 (-0.393%) fell 0.4%. CHINA PACIFIC INSURANCE (601601.SH) -0.300 (-0.995%) and PING AN OF CHINA (601318.SH) -0.530 (-1.023%) dropped 1%, while CHINA LIFE (601628.SH) -0.890 (-2.367%) slid 2.4%. BYD Company (002594.SZ) -0.550 (-0.612%) fell 0.6%, while CONTEMPORARY AMPEREX (300750.SZ) -4.380 (-1.095%) declined 1.1%.

SMIC (688981.SH) -3.000 (-2.194%) dropped 2.2%, HUA HONG GRACE (688347.SH) -3.920 (-1.452%) fell 1.5%, while AI chip stock CAMBRICON (688256.SH) +2.030 (+0.176%) edged up 0.2%. Domestic GPU stocks METAX (688802.SH) -19.920 (-2.534%) and MOORE THREADS (688795.SH) -13.120 (-2.224%) each fell 2.2% to 2.5%. LQKJ (688008.SH) -5.330 (-2.376%) declined 2.4%, while YANGTZE OPTICAL FIBRE (601869.SH) +11.460 (+3.044%) rose 3%. GIGADEVICE (603986.SH) -8.000 (-1.802%) , which released results today, gained 3%. Semiconductor testing stock SEMIGHT INSTRUMENTS (688808.SH) +158.170 (+7.014%) rose 7% by midday. CXMT (688825.SH) -2.280 (-3.689%) dropped 3.7%.

Semiconductor IP leader VERISILICON (688521.SH) -11.530 (-5.095%) sank 5.1% after reporting that its 1H revenue surged 91.4% YoY to RMB1.864 billion, while losses widened 91% YoY to RMB612 million.

Affected by the looming El Nino phenomenon, JPM warned of a potential food crisis next year, driving a sharp rally in food-related stocks. JINJIAN CEREALS IND (600127.SH) +0.650 (+10.062%) , CADSG (600313.SH) +0.620 (+10.065%) , JINGLIANG HOLDINGS (000505.SZ) +0.620 (+10.049%) and BLACK SESAME (000716.SZ) +0.530 (+10.038%) all hit limit up. SHENNONG SEED INDUSTRY (300189.SZ) +0.900 (+17.341%) surged 17.3%, while DABEINONG (002385.SZ) +0.200 (+6.515%) gained 6.5%. The pork sector was also active, with TECH-BANK FOOD (002124.SZ) +0.230 (+10.132%) and LUONIUSHAN (000735.SZ) +0.560 (+9.964%) hitting limit up, WENS (300498.SZ) +0.400 (+2.970%) rising 3%, and MUYUAN (002714.SZ) +0.660 (+1.680%) gaining 1.7%. (da/a)(A Shares quote is delayed for at least 15 mins.)